The Pros and Cons of XERO Accounting Software

The Pros and Cons of XERO Accounting Software


Name: Xero Beautiful Accounting Software
Price: from NZD$27.50 to NZD$70 month
Owners: Founder Rod Drury, New Zealand
Overall Rank: 10/10

XERO An Overview

XERO is a cloud based accounting package which was developed and launched in 2006 by New Zealand founder Rod Drury and his accountant. They both agreed that traditional desktop accounting had become outdated and that there was an opportunity for accounting software to be re-designed as a modern cloud based package. Fast forward eleven or so years and XERO is now one of the most popular cloud based accounting packages worldwide for small to medium businesses.

Despite XEROs huge success and global reach, the official headquarters are still based in Wellington, New Zealand.


XERO does live up to its tag line of ‘Beautiful Accounting Software’ and the developers have done a wonderful job of turning mundane chores like bank reconciliations and invoicing into enjoyable activities. With a clean uncluttered interface, book keeping has never been more satisfying.

  • A completely mobile accounting package – you can login and access your accounting platform anywhere anytime
  • Create invoices, pay bills, claim expenses and manage payroll all from one easy application
  • Super easy and fast cash book coding and bank reconciliations
  • Transaction feeds from your bank directly into XERO
  • Standard accounting reports as well as fully customizable options
  • Lots of functionality for more complex business operations
  • Go paperless – all bills and receipts can be scanned, emailed or uploaded into the XERO
    Secure, reliable with 24/7 support only an email or call away
    Set the appropriate access levels for different staff within your organization


I really struggled with this one, as I love XERO and it’s very hard to be impartial. After much thought, here’s my list of cons.

  • Price. I think every startup business should have XERO from the get go. But if you’re watching your pennies, you may be inclined to hold off from subscribing to XERO until you have a steady income stream to justify the monthly fee. It would be great if they had a completely free option for a limited number of transactions, but then, at only NZD$27.50 the monthly subscription is affordable to most.
  • A reliance on internet access and application up time to complete administrative tasks
  • Accountants, who have relied on Ma & Pa operators who bring in their shoe box full of receipts at the end of the financial year, are at risk of losing a significant portion of their income. You see, XERO makes book keeping so easy, accountants really need to rethink their role. No longer is book keeper and tax agent enough. Accountants need to up skill and become business mentors, advisers and find innovative ways to deliver better value back to their clients. In hindsight, this is not really a con, it’s actually very positive for accountants who are prepared to make that shift and in the end everyone wins.

Who will benefit from XERO

XERO is an obvious and ideal choice for any small to medium business. It is easy to use and has quickly become an industry standard for book keeping and accounting. It is ideal for tradespeople who wish to invoice on the go, as well as businesses that offer products or those wanting to create recurring invoices. In fact, anyone in business should definitely consider XERO for their book keeping and accounting needs.

XERO Tools & Training

XERO has a superb online library of training resources, video, tutorials and help documents. All are fully search-able for easy access. XERO also offers 24/7 online support through a help desk ticket system with good response times.


Based on a monthly subscription model, XERO offers three levels of pricing as follows:

  1. Starter NZD$27.50 per month (5 invoices/5 bills/20 bank transactions/Payroll)
  2. Standard NZD$55 per month (Unlimited invoices/bills/bank transactions/Payroll)
  3. Premium NZD$70 per month (all features of Standard plus Multi-Currency)


Having used MYOB, Quickbooks and various other accounting software packages in the past, my number one top pick is XERO. It’s intuitive, easy to use and puts accounting and book keeping tasks firmly back into the hands of the busy entrepreneur. As a business owner myself, I like to know how I’m tracking and have the option of making improvements within my business in real time. It’s much better than getting a dismal report from my accountant at the end of the financial year, especially if I could have made changes during the year for a better result.

XERO is real time and real easy to use.


Name: XERO

Price: from NZD$27.50 to NZD$70 month
Overall Rank: 10/10

8 Responses&nbspso far.

  1. Marion says:

    I was wondering if they have a free trial or a money back guarantee. The starter package seems to be very small with only 5 invoices for a whole month so I’m sure that most small businesses would need at least the standard package.

    • KD Forsman says:

      Hi Marion, yes they do have a 30 day free trial. The starter package would be fine for a business with very few monthly transactions, but most small businesses would fall into the standard membership. Kind regards, Karen

  2. spahrman says:

    Nice article and very informative! I have a friend who balances several businesses by doing everything “by hand” this software would be very useful for him! I will be passing this info on to him.

    • KD Forsman says:

      Thanks Steve, I remember the days when I did our cashbook in Excel and that was bad enough! Doing it by hand would be even worse! XERO is a much have for any small business, so yes, please pass this on to your friend. Best wishes, Karen

  3. Sam says:

    Thanks for the post,

    Just quickly, do these guys have an app? I’ve tried to find it but have had no luck and wondered if you knew more on this?

    Thanks in advance,


    • KD Forsman says:

      Hi Sam, yes they do have an app available for download in both the apple app store and on google play. It has slightly less functionality than the full desk top version, but is fine for creating invoices, submitting expense claims, reconciliations and checking bank balances on the go. Hope this helps, cheers, Karen

  4. Your review of XERO is enough for anyone who is ready to turn over reigns an release some needed responsibility to a trusted and proven company. Freelance writing is very competitive from what I here so the more you can focus on your progress the better.

    • KD Forsman says:

      Hi Maurice, The good thing about XERO is that it’s so quick and easy, which means I’m spending much less time doing my accounting and admin activities, and can focus more on my core activities which, as you state is my freelance writing. Thanks so much for your comment. Kind regards, Karen

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